Sir, - The veiled threat of manufacturing job losses if Irish authorities do not push back against proposed EU legislation on pharmaceuticals is unjustified (“Pfizer warned Taoiseach against EU pharma reform plans”, Page 1, April 25th).
The proposed EU legislation in question seeks to enhance the accessibility and affordability of medicines across the EU via a framework of carrots and sticks for manufacturers, including curtailing patent protection periods unless certain conditions are met.
As pharmaceutical industry leaders have highlighted, there is a risk that a real or perceived decrease in commercial opportunity in the EU will negatively impact research and development in the bloc. For example, clinical trials are mostly located in the jurisdictions of regulatory decision-makers of highest commercial priority.
However, the main threat being voiced by the industry (certainly in an Irish context) seems to be that manufacturing (and related employment) will be negatively impacted either by the legislation itself, or perhaps more insidiously, if governments don’t support industry counterarguments. While the factors influencing the location of pharmaceutical manufacturing are multifaceted, the key drivers are, realistically, cost and the availability of a skilled workforce, whereas the commercial environment of the chosen manufacturing location does not seem to have historically held much sway. This should be clear enough from much voiced grievance across the pond that the United States pays the highest prices for pharmaceuticals, but they are largely manufactured elsewhere.
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While being clear-eyed about the role of the life sciences industry in Ireland’s economy (and they very real risks that currently exist for the sector), the threat of manufacturing job losses if Ireland doesn’t play ball regarding the proposed EU legislation is an egregious scare tactic. EU legislators should remain steadfast in their goals to balance equitable access to medicines with incentives for pharmacological innovation. – Yours, etc,
Dr RONAN MAHON,
Lecturer in Economics,
University of Galway.
